Pretoria - Trade and Industry Minister Rob Davies has published regulations which will do away with the compulsory requirement for first time applicants for lottery funds to produce audited financial statements.
The regulations will come into effect on 30 July.
Davies, who issued the regulations in terms of Section 60 of the Lotteries Act, 1997, said the regulations streamline the processing of applications by the National Lotteries Board from the point of application to payment in order to make it more transparent and efficient.
The regulations follow concerns raised by both the public and beneficiaries that the intended funds do not reach beneficiaries on time and that there were no effective measures in place for simple distribution of the funds.
"Over and above this, there were concerns that the funds are not being distributed to development of communities that really need them. It is important that the National Lottery Distribution Trust Fund be distributed in a manner that addresses developmental needs in rural, poor and under-privileged communities," said the Ministry.
Davies said at least 50 percent of the money available for distribution must go to priorities that included expansion of home-based care services, the development of facilities for disabled people and substance rehabilitation services.
The money should also go to sport and recreation for talent development, education for early childhood as well as adult literacy.
"These funds must benefit rural development and educational needs in a meaningful manner," said the Ministry.
Organisations that received funding before from the National Lottery Distribution Trust Fund will still be required to produce such audited statement as required in the Lotteries Act.
The department's Deputy Director General, Consumer and Corporate Regulation Division Zodwa Ntuli said: "In order to minimise the risk that may exist with the removal of this requirement, thorough checks will be done on applicants, including site visits and reference checks.
"In this regard, specific attention will be given to organisations that have a history of failing to account for funds received from other donors and those whose members were previously involved in misusing donor funds."
The misuse of funds, she said, will not be tolerated.
